Pennsylvania law requires vehicle owners to purchase and maintain auto insurance to legally drive. Before buying a policy, however, drivers should explore their options and seek out the lowest rates available. A motorist’s driving record, motor vehicle description, desired coverage, and location can all play a significant role in how much coverage costs, but so can a motorist’s method of payment.
The National Association of Insurance Commissioners estimates that the average expenditure in Pennsylvania was over $800 in 2008. Although low in comparison several other states, many motorists in the Keystone State are unable to pay for their policy in full, so they make installments. Making PA car insurance payments means that drivers can pay for their premium over a period of time, effectively reducing upfront costs.
Many coverage providers in the Keystone State allow residents to make installments on their vehicle coverage, but they also include small processing fees. These small charges can sometimes be as high as $10 a month. Although this is an initially small sum of money, over time these fees can significantly increase the overall price of a policy. If residents want to decrease their coverage costs, they may want to consider other payment options.
By purchasing an insurance policy and choosing a three or six month installment plan, residents can reduce the number of billing fees they must pay. Of the Things to keep in mind when purchasing a policy, drivers should know that fewer installments also translates into larger payments. Alternatively, residents may want to consider the option of paying for a policy in full.
If a PA vehicle owner chooses to purchase their coverage outright, they will likely end up saving money over time. A policy purchased outright will include fewer installment fees, and may come with additional discounts. Additionally, residents won’t have to worry about regularly paying their car insurance bill. A lack of payments also means that policyholders eliminate the potential of missing an installment and experiencing a lapse in coverage.
Because vehicle coverage is required to legally drive in the Keystone State, experiencing a lapse in coverage could have significant consequences. If a resident is caught operating a motor vehicle while uninsured, they could have their driver’s license and vehicle registration suspended for three months, receive a minimum fine of $300, the vehicle in question may be impounded, and the offending motorist may have to pay numerous restoration fees to have their driving privileges returned.
Source: http://www.onlineautoinsurance.com/pennsylvania/
